Unemployment is an issue in the United States and has become a growing concern over the past few years. Certain states have reported higher rates than others. The economy has forced many companies to shut down or reduce workforce, which resulted in leaving highly educated people without a job. Some of the unemployed people are considered to be over-qualified for jobs where employers are not able to offer high salary, leaving the unemployed jobless for a long time. The issue has caused a negative effect on the economy.
The unemployment issue is blamed for the high rate in mortgage foreclosure. When a property is mortgaged, the bank holds the property as collateral on the loan. If the homeowner fails to pay the loan, the bank can take legal action to claim ownership of the home. This action is referred to as a foreclosure. Many homeowners depended on two incomes to manage the monthly bills. The lost wages from an unemployed spouse can create extreme financial hardship, which affects holding on to a home mortgage. With limited choice, these families are forced to walk away from their homes. These once highly skilled workers spend many months, even over a year looking for employment. Usually a bank will give the homeowners a little time to catch up on the missed payments. Eventually, the lender of the home mortgage will step in and foreclose the property after the home owners default on their payments.
My proposal will provide a mathematical modeling analyzing the unemployment rate in the state of Florida with relationship to mortgage foreclosure. This model will provide a linear equation that expresses the relationship between the unemployment rate and mortgage foreclosure in Florida. In addition, these two variables will provide a projection of unemployment and mortgage foreclosures in 2015. The proposal will determine whether the equation is an exact model or an approximation of the relationship between the variables